Week 1 Memo
Looze CPA
Memo
To:
Ken and Tina Close
From:
Gena Schwegel-Looze cc: Joetta Malone Acc/ 547 Taxation
Date:
March 24, 2014
Re:
Week 1 Individual Assignment: Memo to Client
In this memo one will include a summary of the facts, including the names, ages, educational background, and income status for Mr. and Mrs. Close and their two dependents. Looze CPA will also discuss two of the Close’s goals and concerns. This memo will also summarize the findings and key elements of the personal budget, balance sheet, and the statement of cash flow. Looze CPA will also make recommendations and support for improving the financial situation for the Close’s.
Summary of Facts
Clients- Ken and Tina Close are married with two children, Tyler (16) and Nikki (14). Ken is 42 year’s old disabled ex-factory worker with a high school education. Tina is a 37 year old Event Planner with an Associate’s Degree in customer service. Although Ken is disabled he does receive disability benefits of $14,500 annually and Tina’s annual income is $32,500. Tyler is a junior at BHS and works part-time at Culver’s with an annual income of $3,100. Nikki is a freshman at BHS and is not employed. The family’s goals are to reduce credit card debt and to save for a vacation. The family’s biggest concerns are that their credit will suffer if they do not pay off the debt and that Tyler and Nikki will both need vehicles soon.
Key Items and Findings
The balance sheet compiled for the Close’s shows total assets to be worth $188,250 and total liabilities at $115,320.24. Ken and Tina’s net worth is $72,929.76. The statement of cash flow compiled includes monthly income from Ken’s Social Security Disability and Tina’s net income from event planning for a total monthly income of $3,294.16. The total cash outflows of $2629.69 can be divided into fixed expenses of $1475.49 and variable expenses of $1154.20 for the month of February. The monthly inflows minus monthly outflows gives
Memo
To:
Ken and Tina Close
From:
Gena Schwegel-Looze cc: Joetta Malone Acc/ 547 Taxation
Date:
March 24, 2014
Re:
Week 1 Individual Assignment: Memo to Client
In this memo one will include a summary of the facts, including the names, ages, educational background, and income status for Mr. and Mrs. Close and their two dependents. Looze CPA will also discuss two of the Close’s goals and concerns. This memo will also summarize the findings and key elements of the personal budget, balance sheet, and the statement of cash flow. Looze CPA will also make recommendations and support for improving the financial situation for the Close’s.
Summary of Facts
Clients- Ken and Tina Close are married with two children, Tyler (16) and Nikki (14). Ken is 42 year’s old disabled ex-factory worker with a high school education. Tina is a 37 year old Event Planner with an Associate’s Degree in customer service. Although Ken is disabled he does receive disability benefits of $14,500 annually and Tina’s annual income is $32,500. Tyler is a junior at BHS and works part-time at Culver’s with an annual income of $3,100. Nikki is a freshman at BHS and is not employed. The family’s goals are to reduce credit card debt and to save for a vacation. The family’s biggest concerns are that their credit will suffer if they do not pay off the debt and that Tyler and Nikki will both need vehicles soon.
Key Items and Findings
The balance sheet compiled for the Close’s shows total assets to be worth $188,250 and total liabilities at $115,320.24. Ken and Tina’s net worth is $72,929.76. The statement of cash flow compiled includes monthly income from Ken’s Social Security Disability and Tina’s net income from event planning for a total monthly income of $3,294.16. The total cash outflows of $2629.69 can be divided into fixed expenses of $1475.49 and variable expenses of $1154.20 for the month of February. The monthly inflows minus monthly outflows gives